Chinese firm signs $1.2b deal for Iraq power plant

China Machinery Engineering Corp (CMEC) signed a $1.19 billion (Dh4.37 billion) contract to build a 1,260-megawatt power station in Iraq, an Electricity Ministry spokesman said. The Beijing-based company will install the natural-gas-fired plant in the Salahuddin governorate north of the Iraqi capital in 45 months, Mussab Serri said in an interview during the signing ceremony yesterday in Baghdad. The ministry also signed contracts valued at a total of $69.8 million yesterday with Farab Co and another Iranian company to double the generation capacity of the gas-fired Sadr plant in Baghdad to 640 megawatts within 12 months, he said. Iraq\'s power plants and distribution network have suffered from years of conflict, sanctions, insurgent attacks and underinvestment. Article continues below Top concern Street protests over unreliable supplies have made the issue a top concern for the government. Two electricity ministers have resigned in as many years. The nation expects to become self-sufficient in power by 2014 after the completion of major projects, Adel Mahdi, an Electricity Ministry adviser, said on October 19. Iraq, which also imports electricity from Turkey, now produces about 6,000 megawatts, Mahdi said. Daily demand next year in Iraq will be about 13,000 megawatts, he said.